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The Fastest Rising Asset Classes in 2023
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Many corners of the market have shown resilience despite persistent inflation and slowing economic growth in 2023. U.S. equities, international equities, and a variety of bonds have seen positive returns so far this year.
In the above graphic, we rank the top-performing asset classes to date with data from BlackRock.
Asset Class Performance, Ranked
Here’s how select asset classes have performed in 2023 as of May 31:
| Asset Type | 2023 Return (as of May 31) | 10-Year Annualized Return |
|---|---|---|
| U.S. Equities | 9.8% | 11.9% |
| Europe Equities | 9.0% | 5.3% |
| Japan Equities | 8.8% | 5.3% |
| Investment Grade Credit | 2.8% | 1.6% |
| High Yield Bonds | 2.6% | 3.0% |
| Cash | 1.9% | 0.9% |
| Emerging Market Debt | 1.8% | 1.9% |
| Emerging Market Equities | 1.2% | 2.3% |
| Developing Market Gov. Debt | 0.9% | -0.5% |
| Infrastructure | 0.8% | 6.1% |
| REITs | -0.6% | 4.3% |
| Commodities | -6.7% | 0.0% |
| China Equities | -9.0% | 2.1% |
After a troublesome 2022 for markets, you can see above that U.S. equities have rebounded the fastest in 2023. They are sitting at 9.8% returns year-to-date.
However, this has largely been a story of a few outperformers buoying the overall market. Nvidia with 159% returns, along with Meta (120%), Apple (36%), and Microsoft (37%) are among the companies with strong growth. Many of these companies are investing billions in artificial (Read more…)